QLD Property Management fee rises seem steep???

Discussion in 'Property Management' started by Toon, 27th Feb, 2020.

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  1. Toon

    Toon Well-Known Member

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    I just received notice of changes to fees and charges for property management and they seem a bit steep. Just wondering if they seem in keeping with what other people are being charged now or over-the-top. (This is in Hervey Bay)

    Management Fee: 9.9% (up 10%)
    Letting Fee: 1.1 weeks rent (up 10%)
    Advertising Fee: $199 per letting (new fee)
    Lease Renewal Fee : 0.55 weeks rent (new fee)
    Technology Fee: $11 per month (new fee)
    Routine Inspection: $99 per inspection (new fee)

    From old email when I first switched to them in 2018:

    "Our fee structure is simple, we charge 9% of rent collected, if a property is vacant, we charge a weeks rent as a let fee. Both these include GST. We have no other fees or charges what so ever."

    What annoys me even more is only a month ago I wanted to raise the rent $10 p/wk when old tenants were moving out and they talked me out of it. That wouldn't have even covered their new charges they just sprung on me.
     
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  2. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Time to speak to other agents in the area to determine the options. You may find you had it good and this is the market. Price leadership is a poor way to market as when costs impact the inevitable must occur and they have filled clients expectations of what cheap is only to disappoint.
     
  3. Mill

    Mill Well-Known Member

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    I don't know Hervey Bay market but compared to Brisbane the new fees seem steep.

    Most good agencies charge the usual % of rent plus 1.1 weeks rent for a new tenant (letting fee)
    Routine inspections & lease renewal are usually free (included in management fee)

    I've had some charge advertising fees and some not.

    You may be able to justify the higher costs if you are receiving really good service in a hard to rent place, otherwise I would be considering using another PM
     
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  4. Toon

    Toon Well-Known Member

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    I've ended up organising to go back with my previous property manager as this one may have been a little better, but not more than 33% better!

    What clinched it too, was when I emailed the current PM to ask how much notice I have to give to end the agreement, she responded with a multi-paragraph justification and explanation of all the new fees before answering my actual question. Pretty condescending, especially since she didn't factor in the new $99 per inspection fee, which at four times a year added another $7.60 p/wk to her calculation of only $6.23 p/wk extra on the current charges. $13.83 is more than 33% more than what I currently pay. And they wouldn't let me raise my rent by 2.5%!
     
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  5. Toon

    Toon Well-Known Member

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    Just received this as the response after confirming I wished to give notice and pointing out the actual cost increase. So rude.

    "Thanks for getting back to me. I know you can do the math, I was giving you a breakdown and options of inspections etc. Which once explained to all my owners was clearer and agreements resigned. We will be sorry to see you leave and understand you are driven on price over service and wish you well. I will have your file ready for (new PM) in 30 days."
     
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  6. TMNT

    TMNT Well-Known Member

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    make sure you leave a negative google review,
     
  7. Toon

    Toon Well-Known Member

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    Good idea - might wait till the property's handed over first though, incase she gets nastier!
     
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  8. Sackie

    Sackie Well-Known Member Premium Member

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    I would leave them at once. Leave negative feedback everywhere you can.

    These rude agencies need to be taught a lesson. Also, if the person who wrote the email to you was not the owner/principal, I would call the agency and talk directly to the owner and let them know how you were treated by that person and why you left negative feedback. That person needs to be held accountable. Who do they think they are? They say jump and we say how high? Nah. At best PM's do a very mediocre job. They are probably my least liked players in this industry.
     
  9. D.T.

    D.T. Specialist Property Manager Business Member

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    hey :(
     
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  10. Toon

    Toon Well-Known Member

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    Unfortunately it was the owner! I almost replied saying there was no need to be so condescending etc. but I'm stuck there for 30 days and I wouldn't want her to do anything vindictive.
     
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  11. TMNT

    TMNT Well-Known Member

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    ill bet the owners attitude isnt much better,
    Ive made numerous complaints in past years, and less than half of the times, the owner does anything or even cares,

    most of the time they defend the actions of the staff!
     
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  12. Toon

    Toon Well-Known Member

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    Shame you're not on the Fraser Coast too.
     
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  13. Sackie

    Sackie Well-Known Member Premium Member

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    Only heard good feedback from folks on here about your PM business :)
     
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  14. AaronCG

    AaronCG Member

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    Same here!
     
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  15. Momentum

    Momentum Well-Known Member

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    I've heard a few bad things.
     
  16. Momentum

    Momentum Well-Known Member

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    I would also vote with my feet and leave these rude asshokes. What a joke, they're increasing their fees after you've signed a management agreement with them.
     
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  17. Tom Rivera

    Tom Rivera Property Manager Business Member

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    If you don't mind me being devils advocate for a moment, I feel like they didn't do anything out of line until the end when she made the comment "We will be sorry to see you leave and understand you are driven on price over service and wish you well.". Admittedly, that comment is quite unprofessional and unnecessary. The fees are higher than what you could expect to pay elsewhere (certainly more than me!), but if (if..!) they offer exceptional service, then you might still see value.

    Also, @Momentum , of course it's uncommon for Property Management fees to change, so it's not something we all expect, but why is it 'a joke' for us to change our continuing fee structure? What other industry would you expect to never ever be allowed to change their fees?
     
  18. Bradley Peet

    Bradley Peet Well-Known Member

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    It happens from time to time

    New player enters market.
    New player uses low fees as an industry "disruptor".
    New player grows fast.
    New player is big but not turning a decent profit.
    New player rolls out fee increase scheme.


    On the other hand... Costs are going up everywhere, I fully back an increase in fees if they are too low to run a profitable business.
     
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  19. Momentum

    Momentum Well-Known Member

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    Because the management agreement is a contract signed with the Commission as a percentage already stated. How would you feel if you're selling your property and the agent has 2.2% entered as his commission but then changes it halfway through. How would you feel if the rates are being increased so significantly.
     
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  20. New Town

    New Town Well-Known Member

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    I have a few in QLD and those additional costs drive me crazy:

    Letting Fee and Lease Renewal Fee are double dipping for finding the tenant and signing a lease
    Advertising Fee: never seems to include re. com .au and you're pressed to pay extra again for the "premium" package to get it
    Technology Fee: just making up stuff to get their mitts on my money
    Routine Inspection: this is a fundamental PM activity that they're being paid to do

    But I win in the end because my properties are so ramshackle the poor PMs spend huge amounts of their day on complaining tenants and organising repair quotes (that I rarely accept) :oops: o_O
     
    Last edited: 27th Feb, 2020
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